Breakingviews: Cyprus –“Apocalypse Now”

Mar. 25 - Cyprus’ bailout is a first, a proper bank resolution that wipes out equity holders & senior bondholders, increasing pain up the capital structure. The world has changed, says Breakingviews.

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Brown today is great news site does this lead as recent eleventh hour -- how -- impact bondholders -- impact women and and how wrong until -- he's another bailout Chris years. Joins us lots of stuff on nom on Cyprus of course for more angles that -- would kneel on my experience. On market come ignores the lessons from this time. Capital controls cost to break out -- U turns in the middle of the night's. This Obama. -- I mean -- holes. Sunk. This. Intensity. Huge crisis markets have been incredibly -- and today when you have the final. That final play well. Pockets. Late DeForest. Markets of years ago -- wanted to go down very much for me. But that acts of the in the the -- somewhat from the world really has changed. I've of them lost week with slower progress. You know what we've seen is some idiot extremists as being contemplates its. Weasel -- initially. The idea all. On in schools. For initial proposals is that in here is their banks. Taking losses a -- in the news. They -- now we've seen agreed and that's what -- that it's still. The fact is 01 stage but to do was broken and in that I ever since day missing a pro pot. Bank resolution which actually -- it's not that you know that's why it's not -- able to hold those and then -- is playing. As you go the capital structure that this is a -- we're actually seeing. Proper ethical resolution more. -- you just you -- and everybody is. Is tackle in order of seniority. And pain is taken it is a it is there it is there's an abortion movement and while the bondholders -- tomorrow. Well clearly this is that's it's actually. That's who. -- up in this case. And that was already be awarding news. The regulation was nothing in this in this way -- There's a sort of Apocalypse Now and -- -- in the -- 25 the and we know whenever you -- that. That the news of alien. Regimes are really gonna kick him but we're seeing it today so it then some -- your preference Rivera got to wonder whether the markets fully appreciates it. Just how much risk there is when you're going into. A -- I'm Brad banks reopened tomorrow supposedly. Or sort of a bank run of what happens to bank of Cyprus yes -- got some deposits off like he. Com. But let's face it as the local economy tanks. Bad debts -- role I mean it's not the best situation for -- Really it's the guard situation the this is the thought is largest bank it's it it is being kept alive there was talk have we come that it might too. Go into. -- about our presence there has been kept alive. It's going to take some. The pulses from Lee -- it's more reliable. And there is gonna be some some painful puzzlement some of -- -- at the polls -- this as they sort of found its its own by and then. You know. It's meant to emerge from this weather is reasonably decent capital position and do. On paper made it OK but if you're the environment since then I mean that -- the damage from the last week to the separate economy. The -- it states this is -- also must. It's gonna be really does this is only here Dixon -- -- on his peace today and -- -- are allowed to -- just. That is also handling of this the the that the president banking system has been -- and his headline. Decipher still best -- up Agile that's a very very match. What have you thought Cyprus needed at the beginning of this week given all of -- boxes. On the real. -- -- confidence. That we've seen it's it is now X plus 1015%. In the that the damage the economy -- this is reopened durable. -- -- -- -- Bank of Cyprus I mean you know it's gonna have a really tough time we wouldn't -- once the Pentagon is that -- do some more support in the future votes for another day. All right Chris many thanks Chris Hughes. I don't watch a US show every day talk birdies in 1630 GMT. -- the problems sources.

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